UC considering ban on Uber, Lyft, Airbnb

The University of California system may bar its workers from using services such as Uber, Lyft and Airbnb on business trips because of issues about regulations and liability.

UPDATE: UC is continuing to weigh a ban or other actions, but the UCLA travel director jumped the gun when she notified administrators that the ban was already in effect. See more information here.

The general counsel at the UC Office of the President “determined that third party lodging and transportation services, commonly referred to as peer-to-peer or sharing businesses, should not be used because of concerns that these services are not fully regulated and do not protect users to the same extent as a commercially regulated business,” according to a letter from Belinda Borden, director of travel services at UCLA.

Lt. Gov. Gavin Newsom, an ex-officio UC regent, decried the ban in a letter to UC President Janet Napolitano on Thursday, saying the services save money — something crucial in an age of rising college tuitions. Moreover, “a University that is focused on the future and committed to fostering new technologies should not work against innovators and entrepreneurs,” Newsom wrote.

Napolitano’s office later issued a statement saying that the ban isn’t yet in effect. “We are, however, reviewing and evaluating issues revolving around the safety and security of our employees when they use such services,” it said. “We are actively seeking ways to overcome potential liability and safety concerns.”

David Hantman, Airbnb head of public policy, noted the possibility of an about-face. “We hope U.C. employees can continue to participate in the sharing economy,” he wrote in a blog post.

The peer-to-peer or “sharing economy” services create marketplaces for people to sell their time or resources to others — whether it’s a ride in their car with Uber and Lyft, or a room in their house with Airbnb. But they’ve stirred controversy for flouting existing regulations. San Francisco, for instance, bars rentals of less than 30 days. Uber and Lyft are regulated by the California Public Utilities Commission, but their insurance coverage is under scrutiny.